Hedge Fund Buys Big Into E*Trade

Date: Tuesday, August 4, 2009
Author: Barron's

ONLINE-FINANCIAL-SERVICES COMPANY E*Trade Financial (ticker: ETFC) has seen egregious losses during the recession, as the stock has fallen from the high $20s in 2006 to below a dollar this year on its subprime exposure. But one hedge fund seems to see glimmers of hope for the overlooked technology aspects of the businesses and is now a 5% owner.

On July 29, Coatue Management disclosed that it owns 56,057,572 shares, or a 5.03% stake in E*Trade. The firm did not show any holdings in E*Trade at the end of the first quarter.